GENERAL OVERVIEW OF THE BANKRUPTCY ABUSE PREVENTION AND CONSUMER PROTECTION ACT OF 2005
The Act has a number of provisions that will dramatically limit the right of many individuals to file for bankruptcy. The Act's most significant anti-debtor provisions include:
- A strict financial means test that may prohibit many debtors from filing a liquidation bankruptcy under Chapter 7;
- A requirement that all debtors must receive a briefing from an approved credit counseling agency at least six months before they can file their bankruptcy case; Note: Check with your local bankruptcy court to determine if they will waive the time restrictions in the beginning months.
- A requirement that debtors take an approved class on debt management techniques before they receive their bankruptcy discharge;
- A provision making it easier for a court to dismiss a bankruptcy case outright or to convert a Chapter 7 case to a Chapter 13 case; and
- A provision permitting a court to impose sanctions on attorneys, or even on debtors, for filing a Chapter 7 case that is dismissed or converted to a Chapter 13 case.